LOS ANGELES : BankAmerica to Donate $3 Million for Housing

BankAmerica has announced that it will provide $3 million in grants to three nonprofit community housing finance organizations to be used for the development of low-income housing.

The funds will be circulated as low- or no-interest loans by the community organizations for pre-development costs such as purchasing options on land, architectural studies, installation of waterlines and other activities for which loans are not usually available commercially.

Local Initiatives Support Corp., a national organization based in New York, was one of three organizations to receive the funds. A total of $500,000 in grants will be distributed equally among its five California branch offices, and those offices will provide interest-free loans to community-based development groups.

Denise Fairchild, director of Local Initiative’s Los Angeles office, said the BankAmerica fund was one of the largest corporate contributions her organization had received. In the past, the group has made loans to and equity investments in housing projects developed by Concerned Citizens of South-Central L.A. and the Korean Youth Center, among others. The Low Income Housing Fund in San Francisco will receive $1.5 million and the Rural Communities Assistance Corp. in Sacramento will receive $1 million.